Okta, Inc. (OKTA) Tops Q2 EPS by 11c, Offers Guidance

Okta, Inc. (NASDAQ: OKTA) reported Q2 EPS of $0.72, $0.11 better than the analyst estimate of $0.61. Revenue for the quarter came in at $646 million versus the consensus estimate of $632.6 million.

Financial Outlook:

All periods factor in a challenging macro environment, and continue to incorporate some conservatism as the Company monitors potential impacts related to the October 2023 security incident.

For the third quarter of fiscal 2025, the Company expects:

• Total revenue of $648 million to $650 million, representing a growth rate of 11% year-over-year;
• Current RPO of $1.985 billion to $1.990 billion, representing a growth rate of 9% year-over-year;
• Non-GAAP operating income of $118 million to $120 million, which yields a non-GAAP operating margin of 18%;
• Non-GAAP diluted net income per share of $0.57 to $0.58, assuming diluted weighted-average shares outstanding of approximately 183 million and a non-GAAP tax rate of 26%; and
• Non-GAAP free cash flow margin of approximately 20%.
• For the full year fiscal 2025, the Company now expects:
• Total revenue of $2.555 billion to $2.565 billion, representing a growth rate of 13% year-over-year;
• Non-GAAP operating income of $535 million to $545 million, which yields a non-GAAP operating margin of 21%;
• Non-GAAP diluted net income per share of $2.58 to $2.63, assuming diluted weighted-average shares outstanding of approximately 182 million and a non-GAAP tax rate of 26%; and
• Non-GAAP free cash flow margin of approximately 23%.

For earnings history and earnings-related data on Okta, Inc. (OKTA) click here.

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